This chapter of a collective book aims at presenting the basics of decision making under risk. We first define notions … of risk and increasing risk and recall definitions and classifications (that are valid independently of any … representation) of behavior under risk. We then review the classical model of expected utility due to von Neumann and Morgenstern …

In this paper we extend the theory of precautionary saving to the case in which uncertainty is multidimensional and we …-Modigliani substitution effect in this multivariate setting. We also characterize the concept of multivariate downside risk aversion as a … motive. We propose an alternative measure of the intensity of downside risk aversion and show that this measure is useful in …

-market outcomes, adverse selection, moral hazard and risk aversion. The model combines student loans with an elementary optimal income …

. This paradigm, whose Expected Utility version takes the form of Arrow & Pratt's more risk averse concept, will be studied …, preserves the flavor of the "more pessimism than greediness" characterization of monotone risk aversion by Chateauneuf, Cohen …

experiments support the relevance of so-called comparative optimism in decision under risk. In the context of illegal activities …

This paper studies monotone risk aversion, the aversion to monotone, meanpreserving increase in risk (Quiggin [21]), in …-preserving increases in risk are closely related to the notion of comparative dispersion introduced by Bickel & Lehmann [3, 4] in Non …-parametric Statistics. We present a characterization of the pairs (u; f) of monotone risk averse decision makers, based on an index of …

The classical expected utility model of decision under risk (von Neumann-Morgenstern, 1944) has been criticized from an … could dislike risk (prefer to any lottery its expectation) without necessarily avoiding any increase in risk ; diminishing … marginal utility may coexists with "weak" risk seeking attitudes ; decision makers with the same utility function may differ in …

We report in this paper the result of three experiments on risk, ambiguity and time attitude. The first two differed by … elicitation of risk, time and ambiguity attitudes and the relationship among these (model free) measures. We find that on the … cautions manner in the risk and ambiguity domain. When we drop this population from the sample, the correlation between our …

correlation from the DELTA-TNS 2002 cross-sectional survey. While income risk does not deter from the stockmarket those households …' reporting a negative correlation, it does for those who report a non-negative sign, consistent with economic theory predictions. …